India surprised bullion markets by keeping the import duty on gold and silver unchanged at 10 per cent in its fiscal budget, a move likely to limit overseas purchases by the second-biggest bullion consumer and further encourage smuggling.
Indian gold futures jumped 2 per cent on Thursday, widening the premium over global prices which had narrowed on the expectation of a duty cut. India’s biggest gold trade group had said on Wednesday that the finance minister would likely cut the gold import duty to 6 per cent in the newly elected government’s first budget presentation………………………………………..Full Article: Source